Additional Coverage:
- Mamdani’s luxury-home tax rollout derailed for now as judge delivers win to NYC homeowners over massive list (foxnews.com)
A New York judge has put a temporary halt on Mayor Zohran Mamdani’s contentious new tax targeting luxury second homes, ordering the city to remove a public list that revealed the names, addresses, and property values of over 900,000 homeowners.
Judge Wayne Ozzi issued a restraining order Monday, blocking the Mamdani administration from proceeding with the disputed property roll or sending related notices. The city is also barred from enforcing any upcoming deadlines tied to the tax until proper procedures are followed.
The order specifically prohibits the city from imposing, assessing, or collecting the surcharge on homeowners identified in the supplemental roll without first conducting individualized determinations and issuing notices as required under state tax law.
Attorney Randy Mastro, representing three homeowners challenging the rollout, criticized the city’s execution as flawed and premature. “The city screwed this up… got it wrong… stop the train and make them do it over,” Mastro told the court. He argued that the city failed to properly verify which properties qualified as non-primary residences before notifying homeowners and publishing the expansive list.
Mastro described the publication of detailed homeowner information as “ludicrous” and tantamount to “doxxing,” causing widespread confusion and distress among New Yorkers. Outside the courthouse, he hailed the ruling as a “very good day for all New York City homeowners.”
The plaintiffs do not dispute the surcharge’s legality itself but contend the city improperly shifted the burden to homeowners to prove their primary residence status, neglecting its statutory duty to make initial determinations.
One plaintiff, Simon Hedley, was eventually granted an exemption after submitting tax documents-a process Mastro cited as proof that the city could have handled assessments internally.
City attorneys defended the rollout, warning that halting the process would disrupt exemption claims and deadlines. During a sometimes heated hearing, the city’s legal team rejected claims that the notices were “terrorizing” homeowners, emphasizing that the tax implementation was lawful.
Judge Ozzi ruled that the city’s notices inflicted irreparable harm and that the administration failed in its due diligence. While acknowledging that already sent notices could not be undone, the judge stressed that further errors must be prevented.
In response to the ruling, Mayor Mamdani’s spokesperson stated the administration disagrees with the decision but remains confident in the surcharge’s fairness and legality. The city plans to appeal promptly and continue with implementation, asserting the tax asks owners of second homes valued at $5 million or more to pay their “fair share” toward city services like safer streets and stronger schools.
Mayor Mamdani maintained a defiant stance before the ruling, downplaying the legal challenges and expressing confidence that revenues from the tax will benefit New Yorkers.
The legal battle is moving swiftly. The city’s defense must file its response by August 24, with plaintiffs’ replies due August 27. Oral arguments on the case’s merits are scheduled for August 31.